UNICYCLE: The Road to $1
If you are new to Unicycle and you’re a bit confused, welcome to the party.
It’s a confusing protocol to say the least, with a bunch of moving parts that only really make sense once you’ve had a play around with it.
For two months now I’ve been trying to understand it properly and it still baffles me.
For someone smarter than I you might be able to clock it sooner or even straight away and if you’re one of those people I take my hat off to you, maybe you can have a go at trying to explain it me so I can understand it better.
With that in mind here is my attempt at deconstructing the core system that keeps this particular unicycle balanced and upright, while you’re juggling, at the same time riding away from an angry Kangaroo.
That system is the arbitrage mechanism.
Unicycle is a closed protocol with its own market inside of this ecosystem. This closed loop of interdependent mechanisms influence the price of the $CYCLE coin while the price of the $CYCLE coin influences the other mechanisms that make up the rest of the system.
Bear with me.
It starts in the Auction Lobby, every 24 hours 100,000 cycle tokens get minted and anyone can bid for these tokens by entering $BNB into the lobby.
At the end of the 24 hour period the cycle tokens get distributed according to the amount of $BNB that were bid.
If only 1 wallet bid with 1 BNB, that 1BNB gets 100,000 cycle tokens
If 10 wallets bid 0.5 BNB each then each of those wallets receive 10,000 CYCLE tokens each, you catch my drift?
Now what’s the point of this you ask? Why create an auction lobby in the first place, can’t people just buy the CYCLE token on the open market?
The answer is the $BNB that bid for the CYCLE tokens in the Auction Lobby get distributed to the $CYCLE staker’s over in the Cycle Stake (Staking Lounge)mechanism. Where 95% of the $CYCLE that gets staked there is burnt forever. This creates a balancing act of minting and burning tokens that incentivises new $BNB to come into the system which feed the staking wallets.
Very important to remember this OK!
Now so far I’ve explained the basic principles that keep Unicycle humming along. BUT….
You see if you bid for $CYCLE in the auction lobby and you stake that $CYCLE, you can’t really get your initial out for about a month to 6 weeks. And that’s quite boring if you’re impatient, even though it can get very lucrative for the ‘patient’ investor.
My recent video on some of my staking results show that I’m yielding 3x returns every 100 days sustainably and consistently, right now I’ve doubled my investment in two moths even though the market has crashed and the price of cycle goes up and down like a yoyo.
Check out the video here. https://youtu.be/MocAlPk7EDI
What a lot of the daily users, including myself are doing is selling those cycle tokens into the open market making a sweet 5–15% gain most days (Arbitrage).
There’s pros and cons to this but an even bigger outcome that influences the whole system arises.
Firstly those sweet arbitrage profits on the daily, brings the price of $CYCLE down, which has two main effects.
1-when the price of $CYCLE goes down, you can get more cycle for your $BNB (great) stacking more $CYCLE to stake will yield you more $BNB dividends in the long term. But if you want to stake more $BNB than the auction lobby allows you’ll have to head to Pancake Swap and do the dirty there.
2-As the price of $CYCLE goes down, because of the arbitrage it disincentives' $BNB to come into the Auction Lobby which is bad for staker’s.
If you have 5 $BNB and you wanted to stake 5 $BNB worth of cycle you would’ve wasted your time trying to bid for $CYCLE in the Auction Lobby. See below.
Right now the date is 07/11/21 in the auction that ended today, a grand total of 3.072 $BNB came into the lobby.
https://unicycle.network/auction: scroll to the bottom of the Auction Lobby results.
As you can see 1 $BNB yielded me 32552 $CYCLE, but 5 $BNB would get you, at most, 100,000 tokens. Thats if you were the only bidder that day which is unlikely. On Pancake Swap your 5 $BNB will get you right now, 156,188 $CYCLE, which if you stake that amount at the end of the staking period you’ll receive more than 50% more $BNB dividends. Unfortunately for us staker’s that would’ve received those sweet $BNB, we have to settle with the 3.072BNB split between us instead. Mind you thats still a sweet 3.6% returns today. But it could be waaay more.
The downside and this is a big downside long term, As the price of cycle goes down then it de-incentivises the $BNB that comes into the Auction Lobby daily. So long term, (100 days long term as that’s the duration of the staking contract) the staker’s get less returns and it takes longer to get the juicy 2, 3, 4, 5x’s and more that’s easily possible if the price of cycle stays higher. In actual fact, as the price of cycle goes up even a little the $BNB returns become proportionally higher. Let me show you.
These are daily returns that are shared amongst the entire staking community.
At a price of $0.005USD per $CYCLE only 1.66 BNB will come into the lobby and shared amongst staker’s.
AT $0.01 it’s 3.33BNB and so on. Thats around where it’s currently sitting.
But let’s zoom out even more.
At $0.10 the $BNB Daily returns equate to 33.333
At $0.50 the daily $BNB returns equate to 166.66
At $1.00 the daily $BNB returns equate to 333.33
That’s daily my friend while the price of $BNB hovers around the price it is at the moment between $275–350USD this will continue to be true.
Think about that for a minute, in this moment the entire Unicycle Market cap fluctuates between $55,000-$75,000. Thats probably the tiniest project going around. YET, every day staker’s are yielding 2.5–3.5%, that’s right every bloody day. I can’t state it any LOUDER!
SCREAMING AT THE TOP OF MY LUNGS HERE!!!
IF UNICYCLE TAKES OFF THE UPSIDE FOR RETURNS WILL BE BETTER THAN ANY PUMPING SHITCOIN YOU’VE EVER SEEN.
And it’s just a staking protocol.